USD INDEX
The U$ made a strong start to the shortened week with buyers in control from the open. Support sits at 98.55 with resistance established at 99.51. While todays green candle reflects a higher high and higher low on the charts, the downtrend remains intact. Sentiment has played a large part in the recent negative sentiment surrounding the USD and the positive Consumer Sentiment data released at the US session contributed to the push higher. While buyers look up to the 100 level, sellers will aim below the 99 mark.
S&P 500
No new tariff threats, some walking back on the EU deal, positive Consumer Sentiment data, all contributed to the equity index having a positive day with buyers/demand winning out. Support at 5858 with resistance at 5940. Todays candlestick reflects a higher high and higher low on the dailies. Buyers will aim at the 6000 level while sellers may see todays high as a lower high on the daily chart and look below 5900 as a first step in reversing the upward bias. Noteworthy that USD and equity markets moved (higher) in the same direction.
GOLD
Confirming the inverse relationship between gold, the U$ and equity markets, sellers of the metal controlled price activity with a sharp push lower. Resistance sits at $3350 with support established at $3287. Sellers will aim below the strong support area on the way to reversing the trend and seeing the resistance area as a lower high on the daily chart. Buyers will aim above $3300. While the retracement may attract sellers to the push lower, the commodity has not lost its safe haven status and to date we have seen buyers step in at all levels following retracements and pull-backs.
BRENT OIL
Neither buyers or sellers were able to make any significant moves as price action was contained within the established narrow range between $62.91 and $64.50. The doji-like candle confirms the lack of direction although both the bias and trend tilt downwards. Note the loosely formed descending trendline on the way to setting up a descending triangle with the $63 level holding up the base.
BITCOIN
The cryptocurrency started on the front foot and pushed up to make a higher high on the way to establishing resistance at $111K. However sellers stepped in and gains were reversed as prices closed back to where they started for the day. Support sits at $107.5K. The sideways trend has been in place since the record high at $111.9K as daily closes hover close to the resistance area. While buyers aim to retest $112K, sellers look below $107K in an attempt to establish a new and meaningful downtrend.
